Compulsary to charge depreciation under companies act

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CA Ritesh Garg (Querist)
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20 August 2011 I wish to know whether it is compulsary to charge depreciation under Companies Act even if asset is no longer in the use for business. Suppse building in this case.
Give support for your answer.

Regards
Ritesh

CA Sreenivasa Rao Munaga

CA Sreenivasa Rao Munaga (Expert)
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21 August 2011 Your query will cover under AS 10 Accounting for Fixed Assets.
Fixed Assets are retired from Active use and held for disposal:

1. Book these assets in the financial statements as lower of Net book value or net realizable value.
2. Expected Loss should be recognized in P&L immediately
3. should be separately shown in financial statement.

Thanks,
CA M Sreenivasa Rao.